UAE capital's master tourism developer in the red despite reporting 280% rise in revenue
Abu Dhabi's master developer of tourism projects has posted a AED2.15bn ($585m) net loss in 2012 despite a 280 percent rise in revenue.
Tourism Development and Investment Company (TDIC) said revenue reached AED1.27bn last year on the back of property sales and leasing, adding that the company expects sales to be even stronger this year.
However, its 2012 published results also showed a net loss of AED2.15bn, primarily attributed to non-cash items such as the increased amount in depreciation coupled with impairments on long term assets.
The company, which is behind the $25bn Saadiyat Island destination in the UAE capital, said in a statement that it anticipates "another year of highly successful leasing and sales figures" as it gears up to deliver the second phase of the Saadiyat Beach Residents and the second phase of the Eastern Mangroves residences.
"Based on the encouraging early results of the first quarter of 2013, we are looking forward to stronger results and better performance in 2013," said Ahmed Al Fahim, executive director of Marketing, Communications, Sales and Leasing at TDIC
Last year, the company, which ended 2012 with a cash balance of over AED2.4bn, oversaw the official opening of the St Regis Saadiyat Island Resort, the opening of the Eastern Mangroves Hotel and Spa by Anantara, and the opening of the Stables and the Conference Centre on Sir Bani Yas Island.
2012 also witnessed the completion and handing over of the first phases of each of the Eastern Mangroves residences, a total of 50 units, the first phase of Saadiyat Beach Residences, a total of 285 units, and the Saadiyat Beach Villas, a total of 254 units.
Ali Al Hammadi, deputy managing director at TDIC, said: "2012 was a phenomenal year for us, as we delivered a number of high-profile hospitality projects and residential units in Abu Dhabi and on Saadiyat and Sir Bani Yas Island.
"Moving forward, we're very optimistic about our performance in 2013. As we start to see our developments come to life, we believe that these newly-opened properties, and others that are under way, will provide a strong uplift to the company's earnings in 2013."
He said rental income from residential properties was "very strong" for the year.
In April, TDIC launched for sale 33 villas of the third phase of the Saadiyat Beach Villas, which make up a total of 77 villas. Following the release, TDIC sold 100 percent of the units in two days only.
Last year, the Abu Dhabi government confirmed the opening dates for the museums planned in the Saadiyat Cultural District - Louvre Abu Dhabi is set to open in 2015, Zayed National Museum in 2016 and Guggenheim Abu Dhabi in 2017.